Question No 08 Chapter No 12 – D.K Goal 11 Class

Question No 08 Chapter No 12

Question No 08 Chapter No 12

Free Accounting book Solution - Class 11 and Class 12

08.Bhushan & Company purchased a Machinery on 1st April, 2015, for 54,000 and spent 6,000 on its installation. On 1st December, 2016, it purchased another machine for 30,000.
On 30th June 2017, the first machine purchased on 1st April, 2015, is sold for 36,000 and on the same date it purchased a new machinery for 80,000.
On December 1, 2018, the second machine (purchased on December 1, 2016) was also sold off for 26,000.
Depreciation was provided on machinery @ 10% p.a. on Original Cost Method annually on 31st March. Give the machinery account for
four years.

The solution of Question No 08 Chapter No 12: –

Dr. Machinery A/c Cr.
Date Particulars
J.F. Amount Date Particulars
J.F. Amount
1st Apr.2015 To Bank A/c   60,000 31st Mar2016 By Deprecation A/c(12,500 + 2,500)   6,000
        31st Mar2016 By Balance C/d   54,000
      60,000       60,000
1st Apr.2016 To Balance b/f   54,000 31st Mar2017 By Deprecation A/c(6,000 + 1,000)   7,000
1st Dec.2016 To Bank A/c   30,000 31st Mar 2017 By Balance C/d
  3,17,500
      84,000       84,000
1st Apr 2017 To Balance b/f   77,000 30th Jun 2017 By Deprecation A/c   1,500
30th Jun 2017 To Bank A/c   80,000 30th Jun 2017 By Bank A/c   36,000
        30th Jun 2017 By Profit & Loss A/c   10,500
        1st Mar 2018 By Deprecation A/c(3,000 + 6,000)   9,000
        31st Mar2018 By Balance C/d   1,00,000
      1,57,000       1,57,000
1st Apr 2018 To Balance b/f   1,00,000 1st Dec 2017 By Deprecation A/c    
1st Dec 2017 To Profit & Loss A/c   2,000 1st Dec 2017 By Bank A/c    
        1st Mar 2019 By Deprecation A/c    
        31st Mar2019 By Balance C/d   66,000
      1,02,000
      1,02,000

Working Note:
Calculation of Depreciation

Statement Showing profit or loss on the sale of Machinery
Particulars
Amount
Machinery Purchase on of Equipment as on 1st Apr. 2015 60,000
Less: – Amount of Depreciation charged on the year 2015-16  
60,000 *10%* 12/12 6,000
Amount of Depreciation charged on the year 2016-17  
60,000 *10%* 12/12 6,000
Amount of Depreciation charged on the year 2017-18  
60,000 *10%* 3/12 1,500
Book value of an asset as of 31st Dec 2018 46,500
Sale Price of Machinery 36,000
Loss on the sale of the asset 10,500
Statement Showing profit or loss on the sale of Machinery
Particulars
Amount
Machinery Purchase on of Equipment as on 1st Dec. 2016 60,000
Less: – Amount of Depreciation charged on the year 2016-17  
30,000 *10%* 4/12 1,000
Amount of Depreciation charged on the year 2017-18  
30,000 *10%* 12/12 3,000
Amount of Depreciation charged on the year 2018-19  
30,000 *10%* 9/12 2,000
Book value of an asset as of 31st Dec 2018 24,000
Sale Price of Machinery 26,000
Loss on the sale of the asset 2,000

Depreciation | Meaning | Methods | Examples

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D K Goel – New ISC Accountancy -(Class 11 – ICSE)- Solution

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ISC Accounts 11 20 Image min 197x300 - Question No 08 Chapter No 12 - D.K Goal 11 Class
D K Goel accountancy +1 – ISC_Accounts_11_20_ImageQuestion No 42 Chapter No 11 – D.K Goal 11 Class

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